How to Buy Your First Home With a Sibling or Friend
Saving a deposit for your first home can feel challenging, especially with property prices continuing to rise across the country. That is why more buyers are turning to co-buying, teaming up with a sibling, friend or partner to make homeownership more achievable, faster and less stressful.
What Is Co-buying and How Does It Work?
Co-buying means purchasing a property together with another person. Both buyers share the deposit, mortgage repayments and responsibilities. Under the First Home Guarantee, two applicants can purchase a home with as little as a 5% deposit and avoid paying lenders mortgage insurance (LMI). The scheme is not limited to couples. Friends, siblings or other family members can apply together if both meet the eligibility requirements.
Who’s Eligible?
To qualify, both buyers must be Australian citizens or permanent residents aged 18 or over. They must be first-home buyers, or have not owned property in the past 10 years, and intend to live in the property as owner-occupiers. The scheme cannot be used for an investment property, but renting out a spare room is allowed as long as one of the owners lives in the home.
Why Co-buying Makes Sense
Pooling your savings with someone else can make a big difference in several ways.
1. Enter the market sooner with a smaller deposit.
Saving for a deposit can take years when you are doing it on your own. By combining your savings, you can reach the required deposit faster and take advantage of government incentives such as the First Home Guarantee. Co-buying allows you to start building equity sooner instead of waiting.
2. Afford better locations or larger homes.
When you apply together, you may be able to borrow more, which opens up opportunities to buy in better areas or choose larger homes. Whether it is a property closer to work or a house with more space, co-buying makes it easier to reach for what you truly want.
3. Share ongoing costs like rates and maintenance.
Owning a property involves expenses beyond your mortgage, such as insurance, council rates and maintenance. Sharing these ongoing costs with a co-owner helps make homeownership more affordable and manageable in the long run.
Plan Ahead for a Smooth Partnership
Before buying together, it is important to have a legal agreement in place. This should outline each person’s contribution, ownership share and what happens if one party decides to sell or move out. Clear planning helps protect both buyers and ensures a smooth partnership.
Co-buying Opens Doors
By combining resources and responsibilities, co-buying gives you a realistic path to homeownership. It is a practical and flexible option that helps you enter the property market sooner and with greater confidence.
Need more info on co-buying a home in Australia?
Contact us for the right guidance to make your first home dream a reality.
